30% of Albanian families in Debt

About 28 percent of Albanian families are in debt in the first half of 2018, while consumer credit has increased by 5 percent, according to a report published by the Bank of Albania on Friday.

According to the report, this figure is unchanged compared to the previous year, but the level of spending has increased more than the income.

The Bank of Albania’s report on financial stability shows that expenditure growth resulted in a narrowing of the financial balance of income-expense.

The report states as well that 40 percent of these households who received the loan declare deterioration of their solvency.

Meanwhile, the survey of the financial situation and the borrowing of families shows that during the first semester of 2018, the number of employees has declined in annual terms, mainly due to the decline of employment in the state sector, while the number of employees in the private sector and self-employed has resulted in growth.

The BoA report shows that for the second half of 2018, most borrowing families (about 74 percent) do not expect change in their solvency.

Moreover, the BoA report notes that in the first six months of this year there was a significant increase in consumer credit (by 5 percent), whereas the loan for real estate (accounting for 63 percent of household loans) did not change during this period, remaining at the level of 108 billion Albanian lek (992 million U.S. dollars).


Source: Xinhua